Qantas has agreed to a proposed $105 million settlement following a class action lawsuit over its handling of flight credits issued during the COVID-19 pandemic. The settlement, which is subject to approval by the Federal Court of Australia, was reached without any admission of liability by the airline.
The class action relates to flights scheduled to depart between January 1, 2020, and November 1, 2022, that were cancelled by Qantas. Plaintiffs alleged that the airline breached its contractual obligations by issuing restricted flight credits instead of providing cash refunds to affected passengers.
The legal action was filed in August 2023 by Echo Law. Partner Andrew Paull said the settlement would allow hundreds of thousands of customers to receive compensation. He noted that many passengers were entitled to cash refunds when their flights were cancelled due to COVID-19 travel restrictions but were instead given limited-use flight credits.
Under the settlement, eligible customers will be able to claim compensation in addition to any refund rights that were previously offered. Once the agreement is approved by the court, Echo Law and Qantas will notify affected customers and provide details on how they can claim their share of the compensation.
In a statement, Qantas said it had already made financial provisions for a potential payout. The airline added that the increase related to the settlement will be recognised outside underlying earnings in the second half of the 2026 financial year, while the payment will be made to a court-approved settlement administrator, currently expected in the first half of the 2027 financial year.
